Mar
19
LIVE BLOG - Cleantech Talk
Posted by Keeley Vega at 11:25 am under Events, Innovation, Patent, Technology.
Thomas Knox, 87′, a partner in Morrison and Foerster’s Northern Virginia office will speak about “The Emerging Cleantech Economy”.
Cleantech is the business of environmentally-sustainable technologies, and the practice involves intellectual property, environmental, energy, and corporate law, among other areas. As the price of oil has skyrocketed and awareness has grown about the need for innovative environmentally-friendly technologies, investing in Cleantech companies has grown rapidly. Cleantech companies are developing sustainable technologies and programs that offer returns for investors, provide worthwhile solutions to customers, reduce our dependence on fossil fuels, and protect the natural systems and resources of the planet.
12:31: “It’s nice to know that anything in our economy is emerging these days.” “When I came out of law school, the big thing was IT.” “But this opportunity is greater.” In this decade we’re seeing a focus on new technology that can achieve sustainability.
12:35: If I came to you as patent lawyer… or even a real estate lawyer, we could have a talk about those disciplines.
12:38: “The corporate world is not always seen as the hero.. but I submit that that is starting to change, slowly.”
12:42: Cleantech definition: “meeting the demands of the present without comprimising the ability of the future to meet their own needs.” You can argue that it’s a buzzword, or just a flavor of the month. Cleantech is used instead of green, sustainability, or eco sound, in order to connect the idea of entrepreneurship to the idea of sustainability.” “The term inherently means new technology.” Example: the Prius. People will flock to it.
12:45: In the alternative fuels area … we’re seeing a lot of government subsidies … but the real winner will be the player that can solve that fuel problem and save the consumer some money.”
12:47: Trends. Venture Capital. “They invested $3B in 321 technologies worldwide last year… that’s about 40% increase from 2006.” You can bet that water will be one of the big issues of the 21st century.
12:49: M&A. Where a great deal of value is created. “There were about 85 M&A deals last year, up from about 40 in 2006. So you’re seeing investment in new companies and exits which encourage the next round of investors to come in.” “Most was in Europe, about 42 transactions. About 32 were in Northern America. The rest were in Australia and Asia.”
12:51: IPOs. There were 30 in 2006 relating to cleantech. Who knows what 2008 will bring.
12:52: Patents. “It’s a huge area of cleantech. Without patent protection … it’s impossible to create barriers to entry.” “There were about 4900 patents issued in 2006 for cleantech technologies, and it’s substantially higher in 2007.”
12:54: “Our cleantech initative is a global one.” In China, there were 4 cleantech IPOs in 2007 that raised about 8/10ths of a billion dollars. There’s a significant presence of private industry.
12:56: Latest headlines. “GE posted it’s largest wind power revenues last year … in only got into the business in 2002. They generated 4.5B in 2007 from this.” “Google announced their initiatives too … they’ve got lots of cash flow, thanks to all of us, I guess.” PG&E. “Shell is building a pilot facility in Hawaii to convert algae into biofuel.” Typically they’re not creating the technology themselves; they’re buying it.
~ Q&A ~
12:58: Does your firm engage with the carbon market and all the transaction that are currently going on? And does your firm engage in policy advising? “Yes, to both questions.” “We advise our clients on what’s coming, what the trends are, and how to stay ahead of these issues. Right now you can argue that doing nothing about energy consumption is irresponsible.”
1:00: Do you see the economic downturns affecting this? “I see there is a certain amount of interest by investors in new technologies … cleantech is clearly one of the few sectors that is outperforming.”
1:01: M&As. “It’s clear that the big players have a big amount of cash to acquire new technology … what you see in these initiatives, by Shell and others, is trying to get into alternative fuel, because they know the fossil fuel party isn’t going to go on forever.” “Sometimes you can say it’s lip service …”
1:05: What’s the success rate of small companies in cleantech? “It’s way too early to say … for those that do succeed, the benefits are huge.”
1:07: Where is cleantech a significant practice? Silicon valley is the undisputed #1. Then you have Boston. And I would submit that the mid-atlatic region is 3rd. Then there’s the SD area and a lot of activity in the Austin area.
1:09: Are socially responsible investments becoming more viable? Yes. The trend has been towards taking socially conscious investment to a mainstream status. The success is taking it to something where people don’t have to go out of their way and bring it right into the mainstream, like right into the GE boardroom or right to Expedia.
1:10: Are law firms open to accepting socially-conscious lawyers? Yes. You have the ability to make change through pro bono work. But now also through fee-paying clients. And that’s what’s so exciting!